A lot of people who go through divorce worry about what their financial stability will look like as they move into living a single life. This is understandable, and its why there’s a lot of focus on the property division process during marriage dissolution. Yet even though it’s critically important to ensure that you’re getting your fair share of the marital assets in your divorce, you can’t overlook how debt is divided, as it can have just as significant of an impact on your post-divorce financial health.
How are marital debts divided?
Marital debts are handled in the same way as marital assets in that they are split in an equitable, meaning fair, fashion. This means that if you and your spouse can’t figure out how to divide those debts on your own, then a court will consider a number of factors when deciding who will be left with which debts. These factors will include everything from each spouse’s financial position to the reason why the debt was taken on. Oftentimes the party that took on the debt during the marriage will be stuck with it.
Beware of individually held debt
Just like with assets, debts can be individually held or part of the marital estate. Individually held debt can complicate matters considerably, especially when marital assets are used to pay for it. Here, one spouse may try to seek reimbursement for marital funds that were used to pay the individual debt, while the other may try to claim that the debt has become shared and therefore should be divided evenly.
Protect your interests during property and debt division
While there’s a lot at stake when dividing your marital assets, the division of debt during your divorce can be just as important. That’s why you should enter the process as fully prepared as possible, meaning that you know the law and how to aggressively apply it in a way that supports your position. An attorney who is well-versed in this area of the law may be able to help you do just that.